With ET Nav Swadesh, market expert Rakesh Vyas (CIO, Quest Investment Managers) discussed in detail the current challenges and future prospects of the market.
Stocks to Buy: There is some movement being seen in the Indian stock market these days. Nifty and Bank Nifty are trading at their lower levels and investors have many questions in their minds regarding the budget and earnings season. In such a situation, market expert Rakesh Vyas (CIO, Quest Investment Managers) along with ET Nav Swadesh discussed in detail the current challenges and future possibilities of the market.
Let us tell you that today, on Tuesday, the second trading day of the week, at 12:45 pm the stock market, BSE Sensex was at the level of around 82,800, which was down by 451 points (-0.54%). At the same time, Nifty50 was at 25,400, which has seen a decline of 164 points (-0.65%).
Rakesh Vyas’s view on the market
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Rakesh ji has given two main reasons behind the current decline of the market. First, the record weakness of the rupee (beyond ₹1 = ₹91) and second, continued selling by foreign investors (FIIs). Due to the fall of the rupee, the returns in dollars for foreign investors reduce, due to which the shine of the Indian market has faded for them.
However, he believes that this decline of rupee should stop now and the export sector can benefit from it in the coming times. Rakesh ji hopes that the earnings growth of large cap companies can be 12-13% in 2026, which will provide stability to the market.
Where will money be made in the market?
Rakesh Vyas believes that money will be made only in those companies where there is ‘earning visibility’ i.e. clear possibility of profit. According to him, large cap and some midcap companies are better for investment in the market right now. The earnings season may have had a slow start, but the banking sector’s net interest margins are now improving. Also, IT companies will start getting the benefits of rupee weakness in the next few months, which will improve their profits.
Which sectors will be better for investors?
Rakesh ji has suggested three major sectors for investors where the risk is less and the profit potential is high:
BFSI (Banking and Finance): Although big banks are under pressure right now, many private banks and NBFCs are available at good valuations. There is every possibility of ‘re-rating’ here along with earnings growth.
Consumer Discretionary (Retail & Real Estate): The auto sector has already gained momentum, but now sectors like retail, hotels and real estate may see good recovery in the next 4 quarters. The share prices here have already fallen significantly, so the risk is less.
Power and Infrastructure: Power transmission and distribution (Power T&D) has become a global story. In view of the increasing demand for electricity, long term investment can be made in this sector.
There may be fluctuations in the market before the budget, but Rakesh Vyas advises that instead of panicking, investors should focus on the right sectors. If the government brings schemes to promote private investment in the budget, it will act as a lifeline for the market.
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